Baja Mining Corp., which raised going concern doubts earlier this month, will cut 40 percent jobs at its headquarters in Vancouver as it does not expect additional funding for its copper-cobalt-zinc project in Mexico by mid-June.
The Canadian miner withdrew all its previous forecasts and said the reduction in the number of staff and consultants will be effective May 25. The company did not specify the number of jobs that will be eliminated.
Baja had warned on May 7 its Boleo project will not be able to proceed beyond mid-June without a cash injection.
Spending at the Boleo project, which is 70 percent owned by Baja and rest by a Korean Consortium, is expected to be $246 million more than the $1.14 billion estimated in 2010, the company had said in April.
Baja said it may also suspend the construction of the cobalt and zinc circuits in Boleo and is in discussions with the project lenders and the Korean Consortium.